SERVICE ECONOMY

Leisure & Hospitality

Prepared for

Mohammad Zahedul Alam

Assistant Professor

Group Members

Sumaiya Afreen (ID#B1001014)Nazifa Nushrat (ID#B1001038)Anika Tasmia Shawi (ID #B1001048)Zaharatul Munir Sarah (ID#B1001049)

BBA 1st Batch

BANGLADESH UNIVERSITY OF PROFESSIONALS

Mirpur Cantonmet, Dhaka- 1216

Date of Submission: 07 May, 2013

Service EconomyCourse: Service Marketing (M411)

Executive summary

The main purpose of this research study is to identify the challenge in achieving the ideal about scope and opportunities of Service sector of Bangladesh.

Tourism sector of Bangladesh Leisure business of Bangladesh Entertainment business of Bangladesh GDP of Bangladesh

The main Purpose of these term paper is to know about the raising sector of Bangladesh which is the service sector of Bangladesh. New opportunities of this sector and what are the challenges of this sector.

Service sector plays a very vital role in the overall economy of Bangladesh. If we want to know about it very clearly we must go through it in detail.

And in this term paper our main focus was the Tourism and Entertainment sector of Bangladesh which is the most developing part of it.

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Table of ContentsExecutive summary............................................................................................................................................................................iii

Objectives of the Study.......................................................................................................................................................................5

Methodology...........................................................................................................................................................................................5

1.0 Introduction.....................................................................................................................................................................................6

2.0 Economy of Bangladesh.............................................................................................................................................................6

3.0 Service Economy...........................................................................................................................................................................7

3.1 Importance of Service Sector..............................................................................................................................................8

3.2 The Comparative Growth of Service Sectors in Bangladesh.................................................................................8

3.3 Service Sector and GDP.........................................................................................................................................................9

4.0 Service economy Leisure, Tourism and Entertainment............................................................................................12

4.1 Entertainment.........................................................................................................................................................................12

4.1.1 Literature.........................................................................................................................................................................12

4.1.2 Music..................................................................................................................................................................................12

4.1.3 Painting.............................................................................................................................................................................13

4.1.4 Drama................................................................................................................................................................................13

4.1.5 Dance.................................................................................................................................................................................14

4.2 Hospitality................................................................................................................................................................................14

4.3 Tourism.....................................................................................................................................................................................15

4.4 Film Industry...........................................................................................................................................................................17

5.0 Contributing in the GDP...........................................................................................................................................................19

5.1 Tourism.....................................................................................................................................................................................19

5.2 Entertainment.........................................................................................................................................................................20

6.0 Trade of service and Trade liberalization........................................................................................................................20

7.0 Employment opportunity in Service sector....................................................................................................................20

7.1 Share of Service Sector in Employment.......................................................................................................................21

8.0 Regulatory Framework............................................................................................................................................................22

8.1 Health.........................................................................................................................................................................................22

8.2 Tourism.....................................................................................................................................................................................22

9.0 Technical Assistance Require................................................................................................................................................22

10.0 Points for Service Sectors.....................................................................................................................................................23

10.1 Development of Tourism.................................................................................................................................................23

10.2 Quality Financial Services...............................................................................................................................................23

10.3 Development of Education sector...............................................................................................................................23

11.0 Concluding Remarks...............................................................................................................................................................24

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12.0 Recomandation.........................................................................................................................................................................24

13.0 Conclusions................................................................................................................................................................................25

14.0 Appendix......................................................................................................................................................................................26

Appendix A.......................................................................................................................................................................................26

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Objectives of the Study

Some specific objectives are set for this research. The principal objective of this study is to evaluate the comparative position of service sector. To accomplish this basic objective, following specific objectives are set:

To conduct the comparative analysis of service sector with Tourism Industry sectors. To analyze the impact of Liberalization on Service sectors To provide the recommendations for development of Service sector.

Methodology

This research has used mostly secondary data have been used for analysis. Data have been collected from

Bangladesh Economic Survey, Bangladesh Bureau of Statistics, Bangladesh Bank, World Bank, and Internet websites, Books, Newspapers, Magazines and Journals. We have used required data for ten years from 2000-01 to2009-10 for analyzing the contribution of economic sectors; growth rate of each sectors viz. service, industry and agriculture. Data of service export and import from 2004-05 to 2009-10 (five years) and the data of employment contribution for 9 years have been explained and also gone through various websites.

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1.0 Introduction

The Economy of Bangladesh is growing one. It is basically divided into three basic sectors viz. Service, Agriculture and Industry. Among the Economic Sectors in Bangladesh, Service sector is most important. The contribution of service sector to the GDP is about 50% (Bangladesh Economic Review-2010). So, Service sectors influence the development of national economy. There is a latent demand for services in Bangladesh. To specify the need of services for huge population of Bangladesh, such sectors are to be opened for private entrepreneurs with required control. The enormous contribution of service sector and an increasing trend there in have played an important role in high growth of GDP. The analysis of last few years’ data gives a clear idea on the phenomenon. The contribution of the industry sector to the economy of Bangladesh has been increasing day by day. For the purpose of national income accounting, Bangladesh Bureau of Statistics (BBS) divides the economy into fifteen sectors (Bangladesh Economic Review-2010, Ministry of Finance).

2.0 Economy of Bangladesh

The economy of Bangladesh is a rapidly developing market-based economy. Its per capita income in 2010 was est. US$1,700 (adjusted by purchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 44th largest economy in the world in 2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, ready-made goods.

Exports of textiles and garments are the principal source of foreign exchange earnings. Shipbuilding and pharmaceuticals have become a major force of growth, while the jute sector is re-emerging with increasing global demand for green fibers.

Remittances from Bangladeshis working overseas, mainly in the Middle East, are another major source of foreign exchange earnings. Other important export sectors include ceramics, cement, fertilizer, construction materials, fish, seafood, cane and leather products. Bangladesh has also made major strides in its human development index.

In real terms Bangladesh's economy has grown 5.8% per year since 1996 despite political instability, poor infrastructure, corruption, insufficient power supplies, and slow implementation of economic reforms. Bangladesh remains a poor, overpopulated, and inefficiently-governed nation. Although more than half of GDP is generated through the service sector, 45% of

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Bangladeshis are employed in the agriculture sector with rice as the single-most-important product.

Bangladesh's growth was resilient during the 2008-09 global financial crisis and recession. Garment exports, totaling $12.3 billion in FY09 and remittances from overseas Bangladeshis, totaling $11 billion in FY10, accounted for almost 12% of GDP.

3.0 Service Economy

The service sector constitutes a significant share of gross domestic product (GDP) in most of the developing countries in South Asia, Africa and the Caribbean region since these countries have an important stake in the Doha Round of negotiation on services liberalization.

Among the many issues being negotiated “Domestic Regulation” has become very important for developing and least developed countries (LDCs) while undertaking liberalization of their service sectors. The Doha Round points out national policy objectives to be a valid concern as long as these are not used to restrict trade.

It strives to facilitate trade in services and yet focuses on achieving a level playing field between domestic and foreign service providers. However, the stress is on regulatory measures which can be applied to limit anti-competitive practices that may arise from market dominance by a few firms (domestic as well as foreign). Moreover, regulation can enhance consumer welfare by ensuring quality and appropriateness of services in the midst of a wide range of providers under progressive liberalization on services.

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3.1 Importance of Service Sector

In the era of global economic integration, competitiveness plays a vital role in the success of international trade. In addition, the competitive environment of domestic markets facilitates higher economic growth and can help in reducing poverty. Competition in the services sector can therefore play a fundamental role in ensuring the competitiveness of an economy. Services are used intensively in the production of all goods, making up around 10-20 percent of production costs in both manufacturing and agriculture, and sometimes more (Sauvé, 2006).

Over the years, it has increasingly played an important role in economic activity and displayed more dynamism vis-à-vis in other sectors. This has led to most countries seeking export markets for services.

Expansion of services offers room for increased foreign exchange earnings through exports and foreign direct investment (FDI) resulting from improved capacity and efficiency of the sector. Depending upon the pattern of growth, it further contributes towards national development by enhancing efficiency in sectors which are key sources of national output and employment..

3.2 The Comparative Growth of Service Sectors in Bangladesh

The Economy of Bangladesh is classified into three sectors. Of these, the average contribution of service sector, industry sector, agriculture sector to the GDP are 49.33%, 28.42% and 22.42% respectively. So, the service sectors contribute most of the development of national economy. The research aims are to analyze the comparative contribution of service sector with other sectors, the impact of trade liberalization of service sector and to provide the recommendations for development of service sector. It is taken a sample of ten years data of GDP from 2000-01 to 2009-10 for analyzing the comparison of service sector with other sectors (industry and agriculture).

The average growth rates between service sectors and industry sectors or agriculture sector or total GDP are analyzed with ‘t’ test. The average growth rate of service sector, industry sector and agriculture sector are 6.17%, 7.49%, 3.21% respectively. The growth of service sector is more than the agriculture sector but less than the industry sector (result of ‘t’ test). The paper also reveals that total trade deficit of service is increasing over the year. The average employment of Agriculture, Industry, and Service to total employment are 58.89%, 12.39% and 25.36% respectively. The paper emphasizes for the development of Tourism sector, Software, Transportation and Financial service, Education with quality, etc.

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3.3 Service Sector and GDP

Over the past three decades, Bangladesh has evolve from a controlled economy to a market

oriented economy through a wide range of policy reforms which include reforms in trade policy,

industrial policy, monetary and fiscal policy, exchange rate policy, and promotion of foreign direct

investment. Trade liberalization has been one of the major policy reforms in Bangladesh. During the

course of the overall trade liberalization program, the liberalization of service sectors (especially

telecom and financial sectors) also received much importance. Service sectors are increasingly becoming the core of Bangladesh economy.

In the context of South Asia where growth rates in services sector has been fluctuating during the last two and Bangladesh have been the exceptions with consistent growth. For instance, the annual average growth in services has increased from 3.71 percent in 1981-90 to 4.48 percent in 1991- 00 to 5.67 percent during 2001-05 for Bangladesh.

The significant change in Bangladesh’s approach towards trade and investment liberalisation in services may be attributed partly to the growing importance of the services sector in the economy and its trade and investment flows in recent years .

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Economic development inevitably triggers a structural change in the composition of output in favour of services.

One of the striking features of the Bangladesh’s growth performance during the last decade has been the strength of the services sector. During this period, Bangladesh economy has been experiencing a significant structural change the role of agriculture has been declining and those of industry and services have been growing inconsistently. Between 1980-81 and 2006-07, agriculture’s contribution to GDP declined from 33 percent to 21 percent, while that of industry increased from 17.3 percent to 29.8 percent.

During the same period, the services sector contributed around 50 percent of Bangladesh’s GDP. This highlights the role of service sector as the driver behind accelerated growth. Since 2004-05, the overall GDP of the economy has been increasing at a rate over 6 percent, which has been facilitated by high growth in industry and services sectors.

During 2001-05, services sector in Bangladesh grew, on average, at a rate of 5.67 percent per annum as against of 5.5 percent growth in overall GDP. The rates of growth in some services sub-sectors have been higher than the growth in overall GDP growth rate in 2006-07. In terms of the share in GDP the major sub-sectors in services sector are ‘wholesale and retail trade’, ‘transport, storage and communication’, ‘real estate, renting and business activity’ and ‘community, social and personal works’, and their respective contributions to GDP in 2006-07 are 14.17 percent, 10.21 percent, 7.65 percent and 7.09 percent.

Among these services sub-sectors, ‘whole sale and retail trade’, and ‘transport, storage and communications’ grew at rates faster than that of the overall services sector, as in 2006-07, these two

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sub-sectors grew by 7.44 and 8.25 percent respectively while the services sector as a whole grew by 6.74 percent.

Share of Service Sector to GDP and Its Dynamics (at 1995-96 constant prices)

Contributon % Share in GDP

Sector 1980-81 1985-86 1990-91 1995-96 2000-01 2004-05 2005-06 2006-07

Agriciulture 33.07 31.15 29.23 25.68 25.03 22.27 21.84 21.11

Industry 17.31 19.13 21.04 24.87 26.20 28.31 29.03 29.77

Service 49.62 49.73 49.73 49.45 48.77 41.43 49.13 49.12

Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Annual Average Growth Rate

Agriculture 3.31 3.31 2.23 3.10 3.14 3.21 4.94 3.18

Industry 5.13 6.72 4.57 6.98 7.45 8.38 9.74 9.51

Service 3.55 4.10 3.28 3.96 5.53 6.36 6.40 6.43

Total 3.74 3.34 3.24 4.47 5.41 5.93 6.63 6.51

Another sub-sector where a high growth has been witnessed is the ‘transport, storage and communication’ sub-sector from where a major contribution to GDP comes and which shows linkages with production and external sectors. The transport head covers roads, railways, air transport, port and shipping services; but high growth in this sector is mainly because of strong growth posted by communications that comprises telecommunication, IT and postal services.

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Robust growth momentums in the communication sector as well as in the financial services have been triggered by liberalization and reforms in these sectors.

For example, deregulation policy for the telecommunication sector and market driven reforms have created a huge demand for new products which have been instrumental in attracting new foreign investment in this sub-sector. With the entry of five foreign cellular operators namely, Telenor, Orascom, TM International, SingTel and Warid Telecom, competition in the cellular phone market has become tougher leading to improvement in service quality and further reduction in tariffs to advantage of consumers. Inception of the state-owned cellular phone company, namely Teletalk, has further augmented this competitive environment. Finally, despite low contribution to GDP, ‘education’ and ‘community, social and personal services’ are also having high sectoral growth rates.

4.0 Service economy Leisure, Tourism and Entertainment

4.1 Entertainment

Bangladesh is a melting pot of races. She, therefore, has a mixed culture. Her deep rooted heritage is amply reflected in her architecture, literature, dance, drama, music and painting. Bangladeshi culture is influenced by three great religions- Hinduism, Buddhism and Islam in successive order, with Islam having the most pervading and lasting impact. Like a colorful montage, the cultural tradition of the country is a happy blending of many variants, unique in diversity but in essence greatly symmetrical. 

4.1.1 Literature

Bangalees have a rich literary heritage. The earliest available specimen of Bengali literature is about a thousand years old. During the mediaeval period Bengali Literature developed considerably with the patronage of Muslim rulers. Chandi Das, Daulat Kazi and Alaol are some of the famous poets of the period. 

4.1.2 Music

The traditional music in Bangladesh shares the perspectives of that of the Indian sub-continent. Music in Bangladesh can be divided into three distinct categories -classical, folk and modern. The classical music, both vocal and instrumental is rooted in the remote past of the sub-continent. Ustad Alauddin Khan and Ustad Ayet Ali Khan are two names in classical instrumental music who are internationally known.

The store of folk song abounds in spiritual lyrics of Lalan Shah, Hasan Raja, Romesh Shill and many anonymous lyricists. Bangla music arena is enriched with Jari, Shari, Bhatiali, Murshidi and other types of folk songs. Rabindra Sangeet and Nazrul Sangeet are  Bangalees'

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precious heritage. Modern music is also practiced widely. Contemporary patterns have more inclinations to west. Pop song and band groups are also coming up mainly in Dhaka City.                    

Figure 1 Musical Instruments

Bangladesh has a good number of musical instruments originally of her own. Originally country musical instruments include, Banshi (bamboo flute), Dhole (wooden drums), Ektara (a single stringed instrument), Dotara (a four stringed instrument), Mandira (a pair of metal bawls used as rhythm instrument), Khanjani, Sharinda etc. Now-a-days western instruments such as Guitar, Drums, Saxophone, Synthesizer etc. are being used alongside country instruments.  

4.1.3 Painting

There is a rich tradition of modern painting which was pioneered by Zainul Abedin, Kamrul Hassan, Anwarul Haque, Shafiuddin Ahmed and S. M. Sultan. Zainul Abedin earned international fame for his sketches on famine of 1943 in Bangladesh. 

Other famous artists of Bangladesh are Abdur Razzak,  Qayyum Chowdhury,  Murtaza Baseer,  Aminul Islam,  Debdas Chakraborty,  Kazi Abdul Baset,  Syed Jahangir, and  Mohammad Kibria.

Figure 2 Zainul Abedin's painting called 'The Rebel Cow'

4.1.4 Drama

Drama in Bangladesh has an old tradition and is very popular. In Dhaka more than a dozen theater groups have been regularly staging locally written plays as well as those adopted from famous writers, mainly of European origin.

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Popular theatre groups are Dhaka Theatre, Nagarik Nattya Sampraday and Theatre.  In Dhaka, Baily Road area is known as 'Natak Para' where drama shows are regularly held. Public Library Auditorium and Museum Auditorium are famous for holding cultural shows. Dhaka University area is a pivotal part of cultural activities.

4.1.5 Dance

Classical forms of the sub-continent predominate in Bangladeshi dance. The folk, tribal and Middle Eastern traits are also common. Among the tribal dances, particularly popular are Monipuri and Santal. Rural girls are in the habit of dancing that does not require any grammar or regulations. Bangla songs like jari and shari are presented accompanied with dance of both male and female performers.

Figure 3 Folk Dance

4.2 Hospitality

The capital’s hospitality industry has almost doubled in size and earnings over the last four years, thanks to the addition of a few new five-star hotels, officials said Wednesday.

The luxury hotels in Dhaka have earned Tk 1.18 billion revenue as room rent in calendar year 2007 while it was Tk 577.29 million four years back in 2004, a top official of a five star hotel told the FE.

“The hospitality industry is expected to go to a new heights as four five star hotels in Dhaka earned TK 1.312 billion in the first three quarters of the current year 2008, up by Tk 140 million from the 12-month earnings of 2007,” he said.Bangladesh’s four five-star hotels -Pan Pacific Sonargaon, Dhaka Sheraton, Radisson Water Garden and The Westin – are situated in the capital.

Foreign businessmen, ready-made garment buyers in particular, have contributed to the growth of the hospitality industry.

The four five-star hotels earned Tk 970.42 million in 2006 and Tk 717.69 million in 2005.“We are optimistic that the hospitality industry in Bangladesh will flourish further in the coming days as the country’s economy is growing fast with the increased flow of tourists and businessmen to the country,” said director (sales and marketing) of the Westin hotel ATM Hafizullah.

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He said: “Businessmen around the world are gradually choosing Bangladesh as one of the lucrative places for investment. This is helping the hospitality industry to reach a new height.”

The occupancy rate of the newly set up Radisson Water Garden and The Westin is higher than their older counterparts — the Pan Pacific Sonargaon and the Dhaka Sheraton, an official of the Radisson hotel said requesting anonymity.He said the newly started Dhaka’s Radisson hotel’s occupancy rate was 81 per cent during January-September period this year followed by 70 per cent of the Westin, 69 per cent of Dhaka Sheraton and 37 per cent of Sonargaon hotel.

“The winter season is the peak time for tourists flow. We expect more revenue earnings during the last quarter (October-December) than that of any other previous quarters of current year 2008,” the official said. “I hope the revenue earnings will cross Tk 1.5 billion in 2008. It will be history for the country,” he said.

In the first three quarters (January-September) of 2008, the Westin hotel earned highest Tk 454 million as room rent revenue, followed by the Radisson Tk 402 million, Sheraton Tk 272 million and the Sonargaon Tk 184 million..

4.3 TourismThe hotel and hospitality sector is growing steadily in Bangladesh thanks to the political stability, growth in export earnings and high turn-up of tourists and corporate and business clients, sources said.

The hotel industry is growing by at least 10 percent as the economy of Bangladesh is posting 6-7 percent growth per annum, said Azeem Shah, General Manager of the Westin Dhaka. “In general the hotel industry is growing by at least 10 percent whereas the Westin Dhaka is clocking 15 per cent growth per year, said Shah. Emphasizing the political stability, he said political instability causes heavy losses to the hotel industry; even 11-days of hartal during this year also caused substantial loss to the hospitality businesses.

“A businessperson has to cancel their booking before and during the period of hartal. Hotels in Dhaka lose an average of three-months of business because of two Eids, Christmas and hartal,’ claimed Azeem, brand ambassador for Bangladesh and an Australian citizen. Suggesting simplification in the visa processing, Azeem said that if the US embassy in Dhaka can issue five-year multiple visa to Bangladeshi

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nationals, why can’t the Bangladesh embassy in Washington issue a five–year multiple visa to US citizens? The tourist arrival in Bangladesh will go up if visa processing system is eased, he claimed.

Demanding rationalization of high VAT rate, the Westin GM has suggested that the existing 15 per cent VAT should be lowered to 10 per cent. The government revenue collection will jump if the National Board of Revenue (NBR) lowers the present VAT rate. Acknowledging the shortage of skilled manpower in the hospitality industry, he said that the international standard training institute should be set up in the country to produce skilled manpower. He deplored that the mindset of the people should be changed towards women working in the hotel industry. Employment of women in the hotel industry is very poor compared to health, education, banking, garment and government service sectors in Bangladesh, he said.

Painting a shiny picture of economic activities, the Westin GM said the hotel industry will get a boost when construction of the Padma Bridge begins.He believes that Bangladesh needs construction of the Padma Bridge to connect the south and south-western parts of the country. Representatives of the World Bank, Asian Development Bank, Japan International Cooperation (JICA), Islamic Development Bank (IDB) and consultants will regularly visit Bangladesh during construction of the Padma Bridge. To a question of construction of new hotels in the capital, Azeem said that this may lead to an unhealthy competition in the market as the existing (five-hotel) hotels are enough to meet the demand of corporate clients and tourists. It is to be mentioned here that some new hotels will be in the market within one or two years. He claimed that business growth in the two-three- star business is higher than that of five-star hotels in the country. Quoting statistics Azeem Shah said that the hotel industry in Bangladesh directly contributes 2.6 per cent to the gross domestic products (GDP).

On potentials of tourism sector in Bangladesh, he said the potentials remain untapped here and the government should launch a massive campaign. He said nearly 99 percent of his guests at the hotel are mostly cooperate and business clients where the number of tourists will be rare.

Meanwhile, the hotel industry in Bangladesh contributed taka 93.89 crore and restaurant business contributed taka 54.77 core taka to the national exchequer in 2009-2010 fiscal year, according to the  National Board of Revenue (NBR). This also shows that businesses in hotels and restaurants are growing.

The hotel industry posted 2.65 per cent negative growth in 2008-9 fiscal year, but the restaurant business posted 7.74 per cent growth over the previous year 2007-08 fiscal year. The hotel industry contributed 74.64 crore taka to the national exchequer in 2070-08 and taka 77.29 crore in 2008-09 fiscal year.

The restaurant sector contributed taka 44.17 crore in 2007-08 and taka 51.91 crore in 2008-09 fiscal year. As National Board of Revenue (NBR) has not prepared the data for the 2010-11 fiscal year, the contribution of the hotel industry and restaurant sector to the national exchequer was unavailable for 2010—11 fiscal year. Azeem Shah took over as the General Manager of the hotel on March 1, 2011. Earlier he joined the hotel as Executive Assistant Manager and Hotel Manager in July 1, 2010. Under his leadership, Team Westin won two awards in the space of a week at two blue riband events recently, which put Bangladesh firmly on the world hospitality map.

These are World Luxury Hotel Awards and World Travel Awards, the first one was received by him in Zagreb and the second one in Bangkok.

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Azeem Shah has extensive experience in the hospitality industry extending over three decades. Before joining The Westin Dhaka, he worked in three continents as General Manager in prestigious international five star deluxe hotels across the world. He held a variety of senior management positions ranging from Vice President, General Manager, Executive Assistant Manager, Food and Beverage Manager, Hotel Consultant and Senior Lecturer. As a food and beverage specialist with over two decades’ experience, he has intimate knowledge and experience in all aspects of food and beverage management. He has a proven track record in turnaround strategies as well as developing and running successful and profitable food and beverage operations. And since his joining the Azeem Shah has brought about changes in the management style as well as the cuisine of the hotel.

4.4 Film Industry

Though the study of film as a discipline started in the sixties, the debate whether a movie is a piece of art or not began much earlier. A group of academicians prefer the term "film" to "movie" and recognise it as piece of Art. But a great number of practitioners and academicians regard it as a form of entertainment, pure and simple. Governments may also promote movies as a mass communication tool to communicate nationally important messages to its people. We will not take any extreme position to explain the phenomena of the film industry of Bangladesh. "Assumptions that fail to provide criteria for the analysis of messages, falling between the extremes of good and bad, beautiful and ugly and art and non-art must prove singularly unfit as basic assumptions for the analysis of films that so clearly fall between these extremes." (Sol Worth 1971)

On the other hand, the inherent issues like demand uncertainty, risk involvement and big investment render movie-making a truly business endeavor. From the perspective of the phenomenal decline of Hollywood in the late 1960s and early 1970s, Fadiman (1973) contends that "movie-making is business which is at the same time an art and an industry."

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After the war of independence of Bangladesh in 1971, most of the time we have seen a gradual decline in the quality of the films that eventually resulted in a slump in the market coupled with a growing indifference in the attitude of the film goers.

Just as success of business depends on customers' tastes and preferences, the key element in film making is a continuous exploration of creativity and innovation. As such popularity in the past has been found to be no guarantee of success in the future. "There is no simple, consistent relationship between film themes, costs of productions and box office receipts."(Edmunds and Strick 1977). It is strategically sound to recognise the truth of movie business. "The measure of success in movie making is either in terms of the number of admissions, the dollar value of the rental fees which exhibitors return to the distributors. But more practically it is not the number of admission, not box office hit; it is the rentals which the distributor receives that are used in calculating the actual profit or loss"(Jowett, Linton 1980).

In today's competitive world one must differentiate his/her movies in the market. But in which area you have to differentiate, in which area you have to compete is a matter of concern. "Each movie while produced is essentially a unique commodity. It needs high degree of product differentiation which results in promotional competition rather that admission competition." (Larmett et al, 1978).

Understanding the phenomena of the film industry in a pragmatic way is important to the people having stake in the industry. Contemplating the learning of modern management and implementing latest marketing strategies in making movies can play an influential role to develop the film industry of Bangladesh.

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5.0 Contributing in the GDP

5.1 Tourism

2013 ANNUAL RESEARCH: KEY FACTS

The direct contribution of turison in the GDP was BDT 193.obn (2.1% of GDP) in2012 and forcast to rise by 7.7 % in 2013 and rise by 6.8 % on the next year.

GDP: TOTAL CONTRIBUTION

The total contribution of Travel & Tourism to GDP was BDT394.8bn (4.3% of GDP) in 2012 and forcasted to rise by 7.5% on the next year.

EMPLOYMENT: TOTAL CONTRIBUTION

In 2012, the total contribution of Travel & Tourism to employment, including jobs indirectly Visitor exports generated BDT7.7bn (0.4% of total exports) in 2012. This is forecast to grow by 3.2% in 2013, and grow by 4.9% pa, from 2013-2023, to BDT12.8bn in 2023 (0.5% of total).Travel & Tourism investment in 2012 was BDT37.3bn, or 1.6% of total investment. It should rise by 0.5% in 2013, and rise by 6.0% pa over the next ten years to BDT67.4bn in 2023 (1.5% of total).

Travel & Tourism is an important economic activity in most countries around the world. As well as its direct economic impact, the industry has significant indirect and induced impacts. The UN Statistics Division-approved Tourism Satellite

DIRECT CONTRIBUTION

The direct contribution of Travel & Tourism to GDP reflects the ‘internal’ spending on Travel & Tourism (total spending within a particular country on Travel & Tourism by residents and non-residents for business and leisure purposes) as well as government 'individual' spending - spending by government on Travel & Tourism services directly linked to visitors, such as cultural (eg museums) or recreational (eg national parks).

The direct contribution of Travel & Tourism to GDP is calculated to be consistent with the output, as expressed in National Accounting, of tourism-characteristic sectors such as hotels, airlines, airports, travel agents and leisure and recreation services that deal directly with tourists. The direct contribution of Travel & Tourism to GDP is calculated from total internal spending by ‘netting out’ the purchases made by the different tourism sectors. This measure is consistent with the definition of Tourism GDP, specified in the 2008 Tourism Satellite Account: Recommended Methodological Framework (TSA: RMF 2008).

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TOTAL CONTRIBUTION

The total contribution of Travel & Tourism includes its ‘wider impacts’ (ie the indirect and induced impacts) on the economy. The ‘indirect’ contribution includes the GDP and jobs supported by:Travel & Tourism investment spending – an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels; Government 'collective' spending, which helps Travel & Tourism activity in many different ways as it is made on behalf of the ‘community at large’ – eg tourism marketing and promotion, aviation, administration, security services, resort area security services, resort area sanitation services, etc; Domestic purchases of goods and services by the sectors dealing directly with tourists - including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents.

5.2 Entertainment

Total output of the services sector consists of the collective outputs of the wholesale and retail trade; hotel and restaurant; transport, storage and communication; financial intermediations; real estate, renting and business activities; public administration and defense; education; health and social work, and community, social and personal services activities. The sectoral share of the services sector is 52.76% of the total GDP. The contribution of cinema halls, cinema production houses, tele films/drama production houses and private TV channels have been considered and added from FY 2004-05.

6.0 Trade of service and Trade liberalization

Trade liberalization has opened a new horizon for service exports. Service export is the amount which is paid by the foreign national for using the service of Bangladesh. Service import is the was formed to eliminate the trade barriers. Here we shall see the impact of trade liberization on the service sectors of Bangladesh. From the table 4, the figure-3 is drawn. It is found from the figure -3 that the import of service average Tk.199368 million is more than the export of service average Tk.112214.5 million. The total trade deficit is increasing over the year. The average rate of growth of service export is more than service import which are 16.16% and 15.89% respectively. This is a good symptom for Bangladesh.

7.0 Employment opportunity in Service sector

Service sector has created a great scope for employment. Bangladesh is a labor intensive country. Population is an important resource of Bangladesh. From the table 5 (data is taken from world Bank data bank) the figure-4 is drawn and it is shown that average employment of Agriculture, Industry, Service to toal employment are 58.89%, 12.39 5and 25.36% respectively.

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Sectoral Composition of EmploymenSectoral composition of employe workforce %

Source WDI 2007

Year Agriculture Manufacturing Service

1982-83 58.8 11 24.2

1984-85 57.7 11.5 26

1989-90 66.4 13 16.2

1995-96 63.2 9.6 25

1900-00 62.1 10 23.5

2002-03 51.7 13.7 34.6

But employment of service sector is increasing. The employment of industry sector is increasing but agriculture sector is decreasing.

7.1 Share of Service Sector in Employment

Service sector employment has also shown a rising tendency but its contribution to total employment is much lower than its contribution to country’s GDP. Table 2 shows the sectoral composition of employ- ment over the two decades. There was a sharp rise in employment share of the agricultural sector in the eighties from 58.8 percent in 1982-83 to 66.4 percent in 1989-90. Since then Bangladesh economy has been witnessing a declining trend in the employment share of agriculture. The share of agriculture in total employment reached to 51.7 percent in 2002-03, which signifies the increase of non-farm activities during that period. On the other hand, the share of the manufacturing sector in total employment increased from 11 percent in 1982-83 to 13 percent in 1989-90, however declined to 9.6 percent in 1995-96, which again rose to 13.7 percent in 2002-03. The employment share of the service sector has been somewhat unstable during the last two decades. It declined from 24.2 percent in 1982-83 to 16.2 percent in 1989-90.

During the late 1990s and early 2000s, when liberalization of some services sectors, like telecommunication and financial intermediaries, was one of the major policy reforms, the employment share of service sector grew substantially, which reached to 34.6 percent.

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8.0 Regulatory Framework

In Bangladesh, the level of market concentration in the services and utility sector tends to be

significantly higher than that of the manufacturing sector. These enterprises are often granted

monopoly rights that they sometimes auction off to private concessionaires through long term

revenue-sharing concessions. Consequently, the market structure of most service industries can be described as monopolistic or oligopolistic. Grameen Phone, a telecommunication service provider, had an estimated market share of 63 percent at the year-end of 2006. Grameen Phone was the most profitable part of Telenor’s global mobile network in the final quarter of 2006 that the Norwegian company reported, with subscribers in Bangladesh almost doubling during the year .

8.1 Health

There is no specific rule regarding the Mode 1. In case of Mode 2, a valid visa holder can avail services from any hospitals or clinic paying specific services.Under Mode 3, a company, incorporated outside Bangladesh, may operate health services in Bangladesh subject to having a valid license from the Directorate General of Health Services under the Medical Practice and Private Clinics and Laboratories (Regulation) Ordinance, 1982. There is no specific rule regarding Mode 4. A foreign health professional needs permission from the Ministry of Health through Bangladesh Medical and Dental Council (BMDC). As per the BMDC rules, a foreign practitioner is given temporary permission up to 6 months to practice in Bangladesh.

8.2 Tourism

In Bangladesh’s schedule of specific commitments, there are market access limitations under modes 1 and 2. But in the existing legislation, there are no specific rules and regulations under modes 1 and 2. However, any persons from a country which hasdiplomatic relation with Bangladesh may avail tourism services in Bangladesh as per the Visa Rules 2006. There is no specific legislation under Mode 3 for this sector. Existing legislation does not provide any rule governing.

9.0 Technical Assistance Require

Trade facilitation in the services sector requires technical assistance of different types at various levels. Technical assistance is needed for improving institutional and human capacities that can manage the negotiating process at different levels:

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Developing infrastructure facilities which include transportation, port and customs and storage facilities along with power supply and communication systems;

Evolving marketing and distribution facilities that are presently far from pleasing;

Broadening the scope of Aid for Trade that can provide technical assistance while undertaking regulatory reforms and translating the services regulatory framework into GATS language.

10.0 Points for Service Sectors

After analysis, it can be said that the contribution of service sector is about 49.22% and the growth rate of service sector is 6.175%. The contribution is about half of the total economic sectors and the growth rate is more than the average growth of GDP. Emphasis is given on the service sector for development. Since the industry sector is growing rapidly (7.49%), support can be given by providing the quality and smooth service. The employment in service sector is increasing day by day. So, there is lot of opportunity for employment in this sector. Though there is negative Trade Balance of service of Bangladesh, the growth rate of service export is more than that of import. It is a good symptom for us. So we have to emphasize the service export such as Tourism, Software, Transportation and Financial service etc. The prospects of some promising service sectors are pointed out below.

10.1 Development of Tourism

Tourism is one of the most promising sectors for Bangladesh with her huge natural beauty, heroic historical background and archaeological resources (Das & Chakroborty 2012). Bangladesh is a country of natural beauty. She has lot of tourism places. These places are of different interest like beaches, historical places, archaeological sites, religious palaces, forest and jungle etc.

10.2 Quality Financial Services

Financial service is another important part of total service sector in Bangladesh. It is a promising sub sector which consists of the Bangladesh Bank (the central bank), four nationalized commercial banks (NCBs), 5 state owned specialized banks (SBs), more than 30 private sector commercial banks (PCBs) and more than 9 foreign commercial banks (PCBs). The rest of the financial sector consists of more than 29 non-bank financial institutions, the capital market, 3 general and 17 life insurance companies, the cooperative banks and the microfinance institutions.

10.3 Development of Education sector

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For increasing of people and literacy rate, the demand of higher education is increasing. The technical institution, Business education, health education create the demand to the people. The development of government and private universities is the indicator of growing demand of education sector.

11.0 Concluding Remarks

The contribution of service sector is about 50 percent of the total GDP. So, the growth rate of GDP depends on the service sectors. The service sector provides the support for the development Industry sector and agriculture sector. For the international trade (export and import), the smooth transportations, financial and insurance service is required. For the improvement of the GDP sector, it has to give special emphasize on service sectors.There is lot of scope of development of service sector. Bangladesh is providing transit and transshipment to India, Nepal and Bhutan that will increase return from the transportation and communication sector. The manufacturing sector is growing rapidly. So, the need of financial service and education is increasing in future. Tourism, hotel service is promising in Bangladesh. The trade liberalization on service will cause the opportunity for service export. So, we have to take the initiatives for development of service sectors. This paper has analyzed the comparative contribution of service sector, the growth of service sector, service export and the employment in service sectors. There is scope for further research about the ways of development of service sectors.

12.0 Recomandation

The growth of an efficient services sector is essential for the overall growth of the economy. An efficient financial services sector is crucial for raising the competitiveness of the countries. For this reason, appropriate government policies and measures need to be designed for a sustained growth of the services sector.

Bangladesh needs to enhance the education and skill level of its workforce as it is important for the financial service firms to employ skilled workforce for delivery of their services to foreign clients or attract firms to employ skilled workforce foreign multinationals into the country.

Computer literacy level along with the general education level needs to be enhanced to boost Mode1 export.

In sectors in which regulatory bodies exist, e.g., Securities and Exchange (SEC) etc. there is the need to strengthen the capabilities .

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Special emphasis needs to be given to introduce E-governance to improve transparency and reduce transaction costs. E-governance can also counter the menace of corruption that is all pervasive in the Bangladesh society.

Regulatory institutions in collaboration with associations for different services sectors should make efforts for standardization, recognition and accreditation of service institutions, facilities and professional qualifications with international standards, qualifications and bodies.

Improvements in law and order situation and political stability are vital in attracting foreign investment. Bangladesh should improve its country image abroad by having political stability, adopting sound macroeconomic policies, clamping down on extremism and militancy, and improving the law and order situation.

Bangladesh's commitments to GATS are very limited but in practice most of the country's services sectors have been liberalized as part of its general economic reform program.

Bangladesh Bureau of Statistics (BBS) needs to improve statistical coverage of the financial services sector. Inclusion of more reliable data on financial service sector would increase awareness among foreign investors.

Government should take initiatives to start short training program on GATS for all stakeholders on a regular basis. The resource person can be drawn from the Ministry of Commerce, universities, and research organizations of the country as well as from the professional staff of the WTO, ITC and UNCTAD.

Attracting FDI: Bangladesh badly needs FDI. More emphasis needs to be given to attract FDI to financial services. The country may benefit from "commercial presence" in these services by way of improvements in quality and supply. Commercial presence should be welcome in banking services as it will bring better technology and best practices, which will improve the efficiency in the sector.

13.0 Conclusions

Different country experiences suggest that trade liberalization alone cannot result in growth and development. This is true especially in the case of LDCs where infrastructure facilities are not suitable and knowledge deficiencies regarding sectoral potentiality further deprive them of the gains through trade openness. On the whole there are several issues concerning trade liberalization and domestic regulation in the services sector which require immediate attention. Some of these are as follows:

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Although Bangladesh has made some significant gains from trade liberalization, a rather slow and cautious approach is preferred by many stakeholders. There is a need to strengthen the capacity for domestic regulation, the underlying rules to strengthen the process of trade liberalization in a number of services sectors.

There is a need to actively involve all stakeholders (civil societies, private sector, etc.) at

every stage of the decision making process from assessment studies to formulation to actual

policy formulation. This could help build domestic support for trade liberalization of domestic regulation.

14.0 Appendix

Appendix A

Reference

https://www.yahoo/tourism.com https://www.goole.com https://www.FE news.com https://www. Google/entertainmemt24.com https://www.google .com Tourisam sector of bangladesh - Google https://www.beautifulbangladesh.com https://www.ask.com

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